Question

11. Suppose we deposit $2,500 in an account paying 3.25% per year. How much is in the account 10 years later a) if the interest is compounded monthly? (A = P(1 + r/n)^nt) b) if the interest is compounded continuously? (A = Pe^rt)

          11. Suppose we deposit $2,500 in an account paying 3.25% per year.
How much is in the account 10 years later

a) if the interest is compounded monthly? (A = P(1 + r/n)^nt)

b) if the interest is compounded continuously? (A = Pe^rt)

11. Suppose we deposit 2,500 in an account paying 3.25% per year.
How much is in the account 10 years later

a) if the interest is compounded monthly? (A = P(1 + r/n)^nt)

b) if the interest is compounded continuously? (A = Pe^rt)

Added by Emily P.

Precalculus with Limits

Ron Larson 2nd Edition

Instant Answer

Solved by Expert Suzanne W.

04/04/2022

Step 1

25% = 0.0325 n = 12 (compounded monthly) t = 10 years Plug in the values: A = 2500(1 + 0.0325/12)^(12*10) A = 2500(1 + 0.00270833333)^120 A = 2500(1.00270833333)^120 A ≈ 3458.56 Show more…

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Suppose we deposit $2,500 in an account paying 3.25% per year. How much is in the account 10 years later a) if the interest is compounded monthly? (A = P(1 + r/n)^nt) b) if the interest is compounded continuously? (A = Pe^rt)